Re-draft/refine your business models further – on each block of the BMC, have a visual and 1-3 bullet points. Remember, these are only “final” for now – you will continually refine your business models!

Further refine your Value Propositions – determine what your VP is, and craft it so that it is stated in a succinct, clear, compelling manner. Be ready to present, as a team, a 60-90 second statement of your value and purpose as an entity in class next week.

For distribution at health care facilities in Sierra Leone, our device is a point of care screening device that will detect sickle cell disease so further treatment can be given. It will contribute to lowering overall healthcare expenditures and reduce childhood mortality related to the disease in Sierra Leone, which arise from undetected cases of sickle cell disease. 

For mothers residing in Sierra Leone, our device is a point of care screening device that will determine sickle cell presence in your child which others may otherwise go undetected, allowing for proper resource allocation and a longer/more meaningful life for your child if afflicted. 

Initial financial model / income statement – post yours to Slack by NOON on Tuesday 4/20 so we can discuss in class.

• Financial Model: 
  • Assumptions – Revenues and Costs 
    • Production costs would be estimated at around $0.10 ~ $0.20 if we compare our device to the common pregnancy test, which can be manufactured in China for $0.02 each. Each unit will be priced according to the cubic meter. Additional costs of ~$0.15 will be derived from shipping, handling, and packaging.
  • Revenue Streams 
    • Sale projections 
      • There are currently no readily available SCD diagnostic devices established in Sierra Leone but one of our competitors is the SickleSCAN device. However, it is less accessible in LMIC countries as it requires a blood dilution and costs $4.50 per test. Another SCD test is collecting dried blood spot (DBS) samples from newborns in high-risk areas and sending them to centralized laboratories for isoelectric focusing analysis. These are costly which is evident in their implementation in Angola and Uganda, with costs estimated to be $15.36 and $9.94 per test. Our estimated lateral flow diagnostic device prototype and production bills of materials is currently $2.98 but further optimization of the device will reduce the cost to ideally less than $1.00 (US), which is the gold standard. 

• • Since the DBS program is the only one that has been tested in high-risk areas, we are looking to sell our device at $10.00 per unit, which is $5 cheaper than the average DBS tests.
    • Based on this, we will loosely predict that our sales projection will be $10,000 in our first year of implementation
  • Cost structure 
    • Costs of goods sold 
      • OEM Sickle Cell Test ($.50) 
    • Overheads 
      • Shipping/transportation ($.25)
      • Packaging Costs ($.20) 
    • Personnel Expenses (commissions) 
      • Hiring a Project Manager/Relationship Manager: Salary of $30,000
      • Networking budget of $10,000
      • Operating Expenses of $10,000
  • Income Statements 
    • Selling Price per Unit ($5.50) 
    • Bulk Pricing ($4.50) 
  • Cash Flow Plan 
    • Money from grants 
    • Make test strip 
      • Manufacturing in China 
      • Supplies 
      • Lab testing 
    • Sell to hospital and health facilities 
    • Lower child mortality rates
    • Make more strips